Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 09/01/2006, Docket: RP06-463-000, Status: Effective

Original Sheet No. 237 Original Sheet No. 237 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

12. DETERMINATION OF DAILY AND MONTHLY RECEIPTS

To the extent possible, all quantities received by Transporter each gas

day at a point of receipt shall be allocated in accordance with the

scheduled and confirmed quantity at such point (Scheduled Receipts). For

purposes of this section "overage" shall be defined as Scheduled

Receipts in excess of actual quantities received, and "underage" shall

be defined as Scheduled Receipts below actual quantities received.

Overages and underages under this section shall include prior period

adjustments, as determined in accordance with Section 4.i. In the event

actual quantities received by Transporter do not equal the Scheduled

Receipts for such point, any overage or underage shall be allocated as

follows:

(1) To the extent Transporter has entered into an Operational

Balancing Agreement as set forth in Subsection 12A below

which covers the point of receipt, any overages or underages

at such point of receipt shall not be allocated to Shippers,

but shall be resolved in accordance with the OBA;

(2) To the extent there is not an OBA for the subject receipt

point, Transporter and the interconnecting party will agree

as to which party is responsible for the predetermined

allocation (PDA) and to the extent the interconnecting party

has agreed to submit the PDA to Transporter, such PDA shall

be provided under Subsection 12B below for the allocation

period, Transporter shall allocate underages or overages in

accordance with the PDA;

(3) To the extent there is no OBA or PDA, Transporter shall

allocate any overage or underage pro-rata based on scheduled

and confirmed quantities at the receipt point.

Overages and underages, as allocated in (1)-(3) above shall be

considered the Receipt Imbalance for purposes of balancing under

Section 14.

A. Operational Balancing Agreement (OBA)

1. An OBA is a contract between two parties which specifies the

procedures to manage operating variances at an interconnect.

For the purpose of minimizing operational conflicts between

various pipeline facilities with respect to the delivery of

gas to and from Transporter's system, Transporter is willing

to negotiate and execute OBAs with appropriate parties that

operate natural gas facilities which